Qunatum soars after upping guidance

Quantum (QTM +9.4%) expects to report FQ3 (Dec. quarter) revenue of $145M-$146M, above prior guidance of $133M-$143M (led shares to fall in October) and a $138.7M consensus. (PR)

The storage hardware maker, long associated with low-margin, commodity-like products, is having some success transitioning towards higher-margin/value-added solutions: Quantum attributes its guidance hike to strong demand from its tape automation, data deduplication, and scale-out storage systems.

Quantum, which has already announced it will transition to a fully outsourced manufacturing model (cutting 120 jobs in the process), now also plans to cut 60 jobs in other areas. The new cuts are expected to yield $6M-$8M/year in cost savings.

The company presents tomorrow at a Needham conference (webcast). Full FQ3 results will be provided later this month.

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